>> brian: if you have to run from the tv, run to the radio and kill need and friends. >> steve: dustin lynch is going to be doing another number from his new hit. log on for the after the show show. up to studio j and that show. bill: good morning, everybody. republicans ripping the white house for its approach on the fiscal cliff, saying the elect is over. it's time to stop campaigning and start talk. some republicans are telling the president, show us your hand. martha: not over the cliff yet but perhaps headed there. good morning.

i'm martha maccallum. the minority leader mitch mcconnell called the president out for what he says is a campaign-style blitz instead of negotiations between both sides. >> rather than sitting down with lawmakers and working out an agreement he's back on the campaign trail. we are not going to solve this problem by creating villians and drumming up outrage. >> he will be out trying to i'm sure zero in on those states represented by members of the house and the senate to try to get public support. bill: democrats upping the ante, looking to raise taxes, protect entitlements and raise the debt ceiling all at the same time. stuart varney, hello, there, sir. you think there has been a shift in those negotiations. >> i don't mean a shift in position. i mean a shift in focus, what

they are focusing in on on the last couple days it's been taxes now it seems to be we are focusing in on entitlements and spending cuts. the democrats and the republicans are presenting a united front saying no cuts to entitlement. no entitlement reform. the unions have an ad campaign saying don't touch entitlements. the president campaigner in chief saying the same thing. he put no entitlement reform front. a unified front on entitlements. bill: we did two hours of television yesterday. i saw a story that was as far apart from coming to agreement as is possible. do you see any give between these two sides? >> i saw a statement from senator dick durbin generally considered on the left of his party, he's saying, nobody

should be so naive as to believe that just taxing the rich will solve our problems. he's telling the left that entitlement cuts must be part of any deal. that put him outside of what i have been hearing from the unions, mainstream democrats and the president. maybe that is a slight chink in the democrats' armor, if you like. maybe they will consider entitlement cuts. maybe he means next year after you work out tax changes now. bill: that's the way i heard it. get the changes before the first of the year then worry about reform in the coming year. on top of that there is a debt ceiling issue to tackle. steve forbes said go ahead and get a 90-day extension, take it into 2013. >> can you put together a complex agreement dealing with

tax, spending cuts, debt ceiling, can you do all of that in a mere 30 days or do you take the steve forbes route, kick the can down the road. i'm not sure the vote terse would tolerate kicking the can and not dealing with it again. thank you, stuart. martha: you have got senate majority leader harry reid saying there isn't much to talk about, that the election shows the american people have given the lawmakers the go ahead to raise taxes. >> americans when they voted raised their voices and supported our pledge. congress is acting in accordance with the will of the american people. martha: reid says any agreement must have the wealthy to pay a

little bit more to reduce the deficit. bill: what happens if they don't see a deal? 90% of americans will see a tax hike in 2013. and families that make between $40,000 and $65,000 will have to pay an extra $2,000 to washington, d.c. in taxes. martha: concerns over america's fiscal cliff have sent the markets lower in premarket trading. there is a look at where the dow is poised to open this morning. with the dow, the s & p and the nasdaq all trading lower. speaking of that, a new round of violent protests break out in egypt as police fired teargas into the crowds. here are some of those scenes.

>> unbelievable. more than 100,000 people flooded into downtown cairo. this time they are protesting the current president martha maccallum and his power grab. they are disillusioned with what he has brought to their country. then you have this happening. police firing teargas. gypt's highest courts refusing to work in protest of morsi's actions. steve harrigan is streaming live from cairo. the protests looked like the unrest we saw in that same square back in 2009 and the arab spring and the overthrow of mubarak. how dangerous is it? is it more dangerous now? >> this certainly allows similarities between what we saw last night and those

demonstrations that overthrew mubarak. hundreds of thousands of people are energized. many of them want this president out. but a couple of important differences. the current president martha maccallum was elected by 52% of the vote just five months ap a - the current president mohamed morsi haas elected by 52% of the vote. martha: it was a close election and the other choice may have been a more democratic choice. people were searching for new leadership and they ended up with this muslim brotherhood path mohamed morsi. what are the charges he's interested in compromise? >> reporter: he has shown no signs of making a concession.

the opposition says they will stay put in tahrir square. they say they won't negotiate until the president makes a complete stepdown. what we could see are parts of the government simply refusing to work. that's what we saw today with two courts. the judges saying we are not going to work until the president backs down. martha: steve harrigan, thank you very much. bill: who exactly is president morsi. he's 61 years old, born in egypt. but educated in the united states. got a ph.d in engineering from the university of southern california in 1982. he also worked for nasa developing engines for the space shuttle program. martha: interesting. president morsi is the leader of the muslim brotherhood

he was narrowly elected in june of this year. he became a member of the muslim brotherhood when the organization was banned. one of his goals is to create a state ruled by islamic or sharia laws. the u.s. does not consider the muslim brotherhood a foreign terrorist organization. the egyptian government banned the muslim brotherhood because of its suspected role in the assassination plot of the president. bill: later this hour general jack keane is here to talk about the recent turmoil in egypt and claims morsi is a new kind of pharaoh for egypt. martha: twin car bombs in damascus, syria, the blast

targeted an area known to be loyal to president bashar al-asaad. then people ran out to help those who were injured in that initial explosion and then came the second large explosion. according to the estimates. 40,000 syrians have died in all of this horrific violence in syria that has been going on now for two years. bill: we are just getting started. $2 and a dream. so many lining unto buy a ticket for one of the largest lottery jackpots we have ever seen. we'll take you to one town where folks to sure use a half billion prize. martha: ambassador susan rise expected on capitol hill. she faced a tough crowd yesterday in the three senators she spoke to. she'll talk about her response on the libya attack that killed

four americans. shwe'll be right back. >> we are significantly troubled by many of the answers that we got and some that we didn't get. >> the information given to thet american people was wrong. >> bottom line, i'm more disturbed now than i was before. @ [ male announcer ] when was the last time something made your jaw drop? campbell's has 24 new soups that will make it drop over, and over again. ♪ from jammin' jerk chicken, to creamy gouda bisque. see what's new from campbell's. it's amazing what soup can do.

martha: you never know what you will catch on camera. this comes from michigan. a very determined deer. this is a beauty supply store. here comes the crash. the deer smashed into the door you will see in a moment from now. show the bolt. 15 minutes spent inside look around for some beauty products. then decided to leave. bill: we are waiting for u.n. ambassador susan rice. she is back on capitol hill.

yesterday she met with three top republicans who all said they were more disturbed about the situation after the meeting than they were when the meeting started. have a listen. >> i'm more convinced than ever, it was bad, it was unjustified to give the scenario as presented by ambassador rice and president obama 3 weeks before an election. bill: that was behind sa -- that was lindsey graham. you are on the record saying you will not support her if she is nominated for secretary of state. but not just because of libya. what is the problem. >> let me clarify that. my first thought is what if susan rice was thrown under the bus and they all knew she didn't have the information from the cia. then i thought you would have to feel sorry for her.

since yesterday talking to some of those to whom she talked i'm convinced in my mind that she is part of the coverup, she knew all the time the cia information that was given to her. but your point is very good. i could not support her in the secretary of state if she is nominated. bill: give me a reason why. >> she is on the wrong side of the membership of the u.n. palestinian authority. she is on the opposite side of where i am. she has kept on funding you necessary cowhich is in violation of instructions given to her through law. she is on the opposite side of every issue that i am. for that reason i would have opposed her anyway. bill: it appears to me and many

others when we listen to folks like yourself talk that this issue is much bigger than susan rice. let me drill down on one area here. because yesterday the cia acting director at 10:00 a.m. apparently blamed the fbi for changing the language and the guidance and the talking points. at 4:00 in the afternoon the cia acting director came back and said it was at cia after all. what explains that? >> this stuff is coming from the white house. they are hoping this will go away. i don't happen to be one of the senators she cares to talk about and maybe it's because while opposed to her from her position as ambassador of the united nations and nothing could change

my mind on that. bill: based on that answer it appears you are willing to take that answer higher than susan rice with it comes to benghazi. >> this will go down as the biggest coverup in history. they all knew it. they are hoping to have it go beyond the election date which it did. but people are not going to forget it. the administration deliberately covered this and misrepresented what happened in benghazi threatened up in the both of four people. one of whom was a good friend of mine, ambassador stevens. bill: the biggest coverup in american history. >> yes, sir. bill: when senator lieberman came out yesterday afternoon --'s listed as an independent. but he seemed to take more of a sill sill tory tone towards he -- he seemed to take more a conciliatory tone towards sue

and rice. you wonder if this is a republican versus democrat issue. if that's the case, you are in the minority. >> that's true. senator lieberman is neither republican nor democrat but he's on the democrat side. his latitude is much different than mine and it goes back to what do you see in that row. that what i think this position is. bill: does the issue move forward if it's democrats on one side and republicans on the other? was this a trial balloon floated by the white house to see how susan rice was received by your fellow senators on the hill? >> i think that's part of it. and checking out to see if there is enough support should he nominate her to be secretary of state that she could survive that. they are in the process of learning that now. i hope they cannot.

bill: it's an intriguing issue. we'll watch and see what comes with these meetings today. we did not expect the reaction we got yesterday from mccain, i yot and graham. martha: take a look at that shot in cairo, egypt as the protesters gather once again. why our next guest says he believes mohamed morsi is the new pharaoh in egypt. bill: half a billion dollars up for grabs. a powerball frenzy. we'll take you one plays where people are lining unfor a lot more than just a luxury item. >> you don't win if you don't play. >> it's just a gamble. you have got to try to make it happen.

bill: iran's military said to be boasting military might. it has two new subject marines and hovercrafts. the military says it's a sign they are self-sif in the defense sector. they will hold drills and send a fleet of ships to the mediterranean and the atlantic. martha: time is running out to get in on tonight's power bowel drawing. people are lining up across the country and across the counter, all across this country. tickets are being sold in 42 states, including areas hard hit by sandy where folks would be happy to cash in on that to get

a new start. rick leventhal joins us live in island park new york. good morning, rick. >> reporter: we are outside pop's wine and spirit. it was swamped by sandy. their lottery machine isn't working at the moment. no lines, no waiting. nick is going to punch me out a ticket. how is business since you got your machine up and running? >> about normal, actually. >> but a lot of folks in your area probably need this money more than most. >> a lot of people. >> do you expect to see some lines today? >> i think we'll. >> is that my ticket?

this could be the one. nick says he wants to split this with me if i win. martha: you know, talk to me about this. the area -- a lot of people have been suffering. and also everybody across the country seems to be look for a win in this thing. >> you know, as the jackpot grows, the number of people playing grows. they sold $300 million worth of tickets since saturday's drawing. so the prize keeps getting bigger. the states that don't have powerball -- arizona may seat longest lines because california doesn't have powerball. people are driving across the border to arizona to buy their tickets. the jackpot could grow higher than $500 million. the lump sum payout over $300

million. there is a 60% chance someone will win tonight. >> they will be disappointed. rick, i hope you are not one of them. i would like to see you back pat work tomorrow. you never know. might show up, might not. look like a winner? >> it does, actually. i like this one. martha: thank you very much, rick. $500 million is a big number. but the odds of winning are really long. your chances of winning the powerball jackpot. 1 in 175 million. your chances of becoming the president of the united states is much easier. 1 in 10 million. the chances of getting a royal flush on the first five cards, 1 in 650,000. if that money went to the government, it would run the u.s. government for about an

hour and 14 minutes. bill: about the length of our show every day. that was a difficult thing for leventhal to do. martha: you said you will give it to the government just to give everyone a prehour and 14 minutes. bill: they are being called thelma and louise democrats. a growing number are saying they are willing to go over that cliff. will they make a deal impossible? alan colmes sets the debate next. >> this is the thelma and louise crowd who want to dream about higher taxes and bigger government. obster's crabfest ends soon. hurry in and try five succulent entrees, like ourender snow crab paired with savory garlic shrimp. just $12.99. come into red lobster and sea food differently. and introducing 7 lunch choices for just $7.99.

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martha: a top republican leader is slamming a group of democrats who he says refuseotiate and are willing to go over the fiscal cliff. the lawmaker is likening them to thelma and louise driving their car over the cliff. senator mcconnell on the floor. here he is. >> this is the thelma and louise crowd who want to dream about higher taxes and big government

without concern for america's economy or standing in the world. we can't keep running trillion dollar deficits every year and throw a tantrum if someone suggests the taxpayers shouldn't keep turning every program they can dream up. let's take a look at the so-called thelma and louise democrats so he know who he's talking about. to say they are willing to go over the fiscal cliff, we have those who say they are not willing to support any reforms to entitlements. dick durbin says he would be willing to talk about it but only after a deal is struck.

>> you have a difference of opinion in all political parties. i don't know many republicans who agree with mitch mcconnell. this is the guy who said his number one political goal was to get obama out of office. i think it's all positioning. you have got a bunch of democrats and mcconnell positioning themselves for negotiation. martha: tucker, what do you think? >> i think the republicans are being outnegotiated by an incredibly aggressive democratic party. they are demanding tax hikes on highest earner. an elevation in the debt limit which is $16.4 trillion. they want to increase spending and they want no cuts to entitlements which are what are driving the debt and deficit. the republicans are attacking

grover more gift. grover -- grover norquist. one side is going to win because it's united, highly aggressive and reckless. >> they said they would reform entitlements later -- >> come on ... martha: later? how many things have we said we are going to do later? it's so ridiculous it makes you want to jump over the fiscal cliff. in terms of raising the debt limit again. let me put this out there. the reason for that is they don't want to go through this exercise of talking about spending cuts. >> the other part of what i was going to say many democrats want to reform entitlements as long as it doesn't hurt beneficiaries. if you are going to talk to me about tax raising. we are talking about the bush

clauses, the bush taxes which are supposed to end after 9 years because they knew there would be huge deficits after that. >> this is not even serious. everybody agrees taxes are going up. taxes are going up on rich people period. the real question is how are you going to pull back on spending? we have a debt larger than our economy because of spending, specifically medicare spending. they are totally unwilling and unserious to even have the conversation. >> let's talk about that issue allen brought up. i had representative chris van hollen on here yesterday. what about slowly raising the age from the future. getting it into legislation now. people are living longer, the game has changed in terms of

this dynamic and the numbers and framework are quite old. he said no way. i will not consider that. what about means testing? what about people who have enough money to not need these benefits? should democrats be open to those two ideas? >> i think they should. certainly raising the age and raising the amount of money past which you contribute to social security. they could raise that. those are good ideas. i don't agree with van hollen on that. >> if you curtail spending people will get less stuff. it will affect the beneficiaries. reform is a cut. let's not lie. these programs are unsustainable. better tell the truth now. >> you can't say the republicans care about deficit reduction if they are not look at ways to enhance revenue.

that conversation is over. the republican leader was holding the line on that. >> they could have negotiated years ago and saved a lot of trouble. >> there is a debate going on currently where one side has made a lot of concessions and the other side hasn't. martha: we hear from both sides all the time through every election season that they want to flatten the tax code. why can't they have a more simplified tax code and it does increase revenue. but democrats don't want to hear about that. >> republicans don't want to make sure corporations pay their fair share. you have got a bunch of corporations whether it's gevmenter. >> exxon that don't pay tax at

all. that's where the money is. >> why not flatten out corporate tax. you lower the corporate tax rate and plant out the tax code so everybody has to pay. >> the tax code is becoming more progressive every year. every year an ever-shrinking group of people pay for the budget. martha: i just hope that people are watching on capitol hill. always a pleasure. thanks, gs. bill: there is a new effort to tackle an old problem. republicans coming up with a plan to deal with immigration in america. susan rice today will talk to another round of lawmakers.

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martha: this was an issue during election, now there is a push for voter i.d. laws in nevada. some say people were voting illegally. nevada's secretary of state says he will sponsor a bill that would require voters to have i.d.s. if no image is available they will take it person's picture and have them sign an affidavit to say who they are. lawmakers are considering this plan next year. bill: around the clock there were demonstrators in central cairo. at times 100,000 egyptians flooding downtown and sometimes violent protests of mohamed morsi's power grab. as with mubarak the egyptians are claiming morsi is acting

like a modern-day pharaoh. jack keane is here, a former vice chief of staff of the army. general, good morning to you. >> good morning, bill. bill: i guess the easy way to understand this is morsi made a power grab on the courts to protect himself and the muslim brotherhood and the courts traditionally have been aligned with the army and the army was aligned with mubarak who was thrown out of power. is that the rub we are watching here? >> morsi has been consolidating power since he got into office. he sacked the top military brass and other key government officials. the constitutional court concerned about the legislature and his relation with the muslim brotherhood disbanded it. now writing the constitution, the muslim brotherhood dominates it and they have been freezing out the minority, the christians

and the secularists. morsi sees that. he's afraid the journals would disband that as well. bill: isn't there a fear the courts could expand islamic law and make it more prevalent throughout egypt? >> that's clearly what the concern was that the court had with the constituent assembly. that the new constitution being written by the muslim brotherhood would exclude the voice of the minority in a future government. clearly that's a major issue. >> let's bring it home. you make some strong points including this one. we are watching and witnessing the result of u.s. disengagement from the region. in what sense do you see that, general? >> when you talk to leaders in the region. for the past 3-4 years they believe the united states has been disengage.

it started in iraq it's our announced policy in afghanistan. then when the arab spring took place. as opposed to us getting involved and helping to shape that because the people pushing that were democratic reformers, we pulled away from it. who is gaining ground snrt islamists are gaining grounds. died is on the rise in the region. there are four countries who have yet to have their future government resolved. one is libya, syria, tunisia and yemen. egypt truly matters. if that becomes an islamic authoritarian regime it will have a significant impact on those other countries. bill: you believe we are losing ground in the battle with islamists and they are gaining more power. that's not something people wanted to see after the arab spring. but you believe the window of opportunity in developing a more modern arab world is closing.

when you think about that, you think about the sacrifice that happened in afghanistan. and happened in iraq, and we are not take advantage of that? have you seen that play out? >> right now it's playing out against us and against mostly what we are talking about here is the people in the middle east. the drivers of instability are political and social injustice and lack of economic opportunity. that's what these reformers are seeking. that's -- it seems to me it's something we should be helping them to achieve. if we are not involved in that process the islamists and the radicals are going to have undue influence and that's happening before our eyes. >> how do we engage? >> this is mostly a diplomatic effort. the united states has got a huge voice in the world. we stand for, you know, values and equality and freedom. and we should be using that voice and then diplomatically

influencing a situation. look at libya. we depose a dictator then we pulled away and did nothing to help that new moderate regime which we were glad to see take hold in terms of helping them establish a security force that could gain control over all of these militant groups in libya. we did nothing to help them. as a result of that the al qaeda and those affiliated groups have undue influence and the benghazi debacle is a result of that. bill: can we do anything about that when you consider the politics operating internally within these countries? >> in my own mind there is plenty we can do. right now engage in libya and let's get a security force and let's start gaining some control in that country and pushing back on the radicals. let's choose a side on the war taking place in syria and start helping the moderate rebels.

even the united kingdom is looking towards doing something like that. why sit on the fence and turn it over to the rad cat islamists and the al qaeda which may be the case. bill: there is a power vacuum in the world. that's clear to see. jack keane, i appreciate your analysis. martha: coming up, a lurid tale of money and murder as a woman goes on trial accused of defriending a jackpot -- befriending a jackpot winner. she conned him out of the money and then she killed them. the drama that's unfolding in court. >> i'm telling you not to do it because it am not in your best interest. you are now made aware of that. no, ma'am.

bill: the half of the tv show "2 1/2 men" releasing statement. a teenager said his religious awakening affected his attitude. he says the show is and i appropriate with its sexual innuendo. he said he apologizes if his comments show disrespect to my colleagues. i never intended that. that's a redo. martha: the murder trial fear man accused of cozying up and

killing a big lottery winner is about to get underway. bill, what happened? >> reporter: this should have been a wonderful story. rags to riches. a guy takes a quick pick. within a few years abraham shakespeare is dead. prosecutors believe it's because of a woman who is now about to begin her first degree murder trial defense. but they say she told him she wanted to write a book about his rags to riches story but swindled him out of his $2 million and shot him two times in the chest. she is crying in court after the judge admonished her for making eye contact with the jurors. he gave away millions to families and friends and hangers

on. everybody who needed help, a bailout and a check. the opening statements begin in just a few minutes. >> what kind of evidence do they have against her? >> they have an abundance of evidence. all the financial records showing she got shakespeare to sign over all of his assets. she was living in his million dollar mansion he bought with his lottery winnings. once they discovered his body buried under a slab. that was a house bought for with his lottery winnings. but all along dede moore denied guilt. >> did you murder abraham shakespeare? >> absolutely not. >> the most critical evidence prosecutors will show this jury is walmart surveillance video

showing her buying duct tape, trark bags and sheeting all for the purpose prosecutors say of disposing of shakespeare's body. bill: republicans demanding the president put his plan on the table. is there room to make a deal or are we going over that cliff, america? we'll talk to a key democrat to find out what they are willing to give. >> announcer: meet jill. she thought she'd feel better after seeing her doctor. and she might have, if not for kari, the identity thief who stole jill's social security number to open credit cards, destroying jill's credit and her dream of retirement. now meet amanda. with a swipe of her debit card, she bought some gas... and an all-expense-paid trip to hawaii for ben. ben is the intity thief who used a device called a skimmer to steal her

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this is a new hour of "america's newsroom." good morning to you. bill: good morning to you. i'm bill hemmer. martha: i'm martha maccallum. bill: the division not a good sign for a deal any time soon. we have six weeks on the calendar before the deadline. we are waiting to see if the two sides are moving away or toward one another. have a listen. >> could cut $600 billion more out of the federal government and no one would know the difference except for the people employed by the programs here in washington. >> remember we've already done more than a billion dollars worth of cuts. we need to get credit for that in these negotiating has take place. martha: i'm wondering about that, right. here is chief congressional correspondent mike emanuel live from capitol hill. where are we going to get on this today, mike. >> republicans clearly feel like too much of the discussion in washington related to the fiscal cliff has been about increasing tax revenue.

they want to make sure that entitlement reform is truly on the table. they are bringing in former bill clinton white house chief of staff erskine bowles who has done a tremendous amount of work shall on dead issues in recent years. he had his own individual plan last year which looked at adjusting the medicare eligibility cage and making adjustments to social security. weapons have to be encouraged by editorials out today. in "the washington post" says since 60% of the federal budget goes to entitlement programs there is no way to achieve balance without slowing the rate of increase of those programs. usa today also has an editorial out which says, quote, social security represents more than one fifth of federal spending, much too big to ignore. the sooner these changes are made the less painful they will be. you can expect republicans to hammer those points home today, martha. martha: it's a question of whether or not we are going to establish any real change or reform that will improve the

system going forward and that is still on the table. meanwhile in making this argument you have one of the top ten a senate republicans who make his point with a video. >> texas senator john cornyn put that out this morning and puts out graphics showing the numbers. it says if president obama gets the tax increase on upper earning revenues that will generate money next year, with that that will leave a trillion dollar deficit next year. waoes trying the's trying to say to the president, let's get serious here, let's put real numbers own the table an on the table including entitlement reform. bill: president obama meets later today with business leaders at the white house including the ceo's of home depot and coca-cola. on that agenda finding a

balanced approach to reduce the nation's death and keep the economy growing. before the meeting mr. obama said to give a speech on the need to renew middle income tax tax cuts with middle income tax americans at his side. martha: china apparently is not a current see manipulator, that according to the obama administration. you remember mitt romney said he would declare them immediately if he became president. they do a report twice a year on whether the countries are manipulating their currency to try to gain trade advantages. a lot of people feel china is doing that. despite the decision not to declare them as such, the administration says the chinese yen remains significantly under valued 16-cents to every u.s. dollar. that makes it a lot easier to buy our goods. bill: three minutes past the hour now. republicans sent to introduce their own version of the d.r.e.a.m. act called the aeu

grieve act. achieve act. it would provide legal status for hundreds of undocumented aliens. republicans are serious about coughing this issue. >> we have to get this ball rolling. we have to have a discussion that is sensible, calm, that discusses all of the different aspects of the issue and this particular part of immigration reform seemed a logical place to begin. >> steve centanni is live in washington on this. steve, good morning. how would this fit for calls for comprehensive immigration reform? >> that is unclear. republicans seem to want take immigration piecemeal. at a capitol news conference they said that could be a starting point for that conversation on immigration. the very first step is similar to a proposal that senator marco rubio had been working on until the president took his unilateral action earlier this year. phaoub kwrorubio hasn't signed

to this legislation yet. senator john mccain has. this is why senator hutchinson says these young people deserve a break stpw they want t break. >> they want to go to college and be part of our system. the best thing we can do to utilize their talents and the education they received is give them legal status and have them earn their way into permanent status. bill: how would this work, the achieve act. >> this would set up a three-stage visa system for those brought to the u.s. at a very young age. to qualify you have to be brought to the u.s. at 14 or younger. you have to be 28 years or younger to apply and no criminal record whatsoever and there would be a background check and

a knowledge of english, u.s. history and u.s. government. those fighting for comprehensive immigration reform says this bill does not go far enough. it is not likely to see action during this lame-duck session, but some time next year. bill: now they think what, steve? >> they think it's time to take some kind of action toward immigration, and of course that had already been on the table, marco rubio had been talking about it. they are going ahead piecemeal, one bill in the house to let foreign immigrants that have higher education have an easier chance at a visa and on the senate side their version of the d.r.e.a.m. act. they are moving forward. let's see if that's all it takes to attract latinos to the republican party, or they should do more or this will help or hurt. bill: thank you. martha: a little background for

you on illegal immigration here, according to the center for immigration studies an estimated 28% of all immigrants are here in the u.s. illegally. nearly 7.1 million of them are in the u.s. labor force and roughly 4.4 illegal immigrants in the u.s. are about 30 or younger. bill: a bit later we'll talk to one of the republicans behind the achieve act, senator kay bailey hutchinson out of texas on how the bill could help tackle immigration. she'll be our guest and we'll put it to her in about 30 minutes. martha: interesting lunch date that will happen at the white house. we are getting word across the wires here that president obama will meet with mitt romney. he'll come to the white house on thursday. that will be the first meeting that they've had since the election. we don't know what they will sit down and talk b. at one point president obama did say that there were certain issues that he would reach out to mitt romney and discussion. whether it's a photo op sort of formality or whether there is substance to it and perhaps some sort of position, who knows.

bill: i think he's been remarkably quiet since the election. martha: thanksgiving pictures. bill: one came out over the weekend too. with the exception of the one conference call where he was on there explaining how he thought the election turned out with some of his major donors, he has been pretty much out of the spotlight. that is going to change perhaps after the meeting this week and we will see that change. lunch date thursday at the white house. martha: we are not invited. bill: be there. martha: if we were we'd know what was happening. bill: the controversy over libya. this story based on what we heard yesterday and susan rice's trip to capitol hill, this issue is far from over. >> if anybody had been looking at the threats coming out of benghazi, libya, it would jump at you this was an al-qaida storm in the making. bill: more questions again today for susan rice. she is back on the hill arriving only moments ago. and there are new reports emerging that libya was not the

only al-qaida-linked attac september 11th. house homeland security chairman peter king is live with us in about three minutes on that. martha: new demands as the fiscal cliff approaches about six weeks away now, what democrats are now asking for, democratic congressman bill pascrel is here next. bill: a chilly confrontation that left a couple praying for their lives. why a cellphone video made this guy pull out a gun. >> the vehicle that they were recording was wappin watching them and shortly after pulled alongside of them, pointed a firearm towards them and demanded the phone with the video.

bill: a huge fire breaking out at a power plant outside wichita, kansas. a spokesman said it started about 2:00 in the morning inside a piece of high voltage equipment. firefighters say the flames

spread to 15,000-gallons of mineral oil. the plant uses it for transformers. look at those flames. so far no reports of any injuries. that is wichita, kansas. martha: u.s. ambassador to the u.n. susan rice going back to capitol hill this morning for more meetings with republican leaders. they are going to talk about her controversial benghazi comments that got so much attention after those sunday morning news shows. but yesterday republican senators say that their face-to-face meetings with ambassador rise actually left therice actually left them with more questions and concerns about that night in benghazi. here is senator ayotte. >> we know from previous information that the class need talking points said clearly that al-qaida -- individuals associated with al-qaida, or with ties to al-qaida r- were involved in the attack. that was then omitted from the

unclassified talking points. she had reviewed the classified talking points. when you look at what she said cbs, face the nation, also on "meet the press," not only was that piece omitted, also she said that al-qaida was decimated. martha: this is a new report that claims that benghazi was not the only al-qaida-linked terror attack on september 11th. were some of those other attacks al-qaida inspired or linked. that is a big tor story we are pursuing. we are joined by peter king. chairman of the homeland community. good to see you. >> good to be with you. martha: if susan rice is indeed considered for secretary of state we need to know where she stands on the issue of al-qaida and whether or not she believes that al-qaida is still a threat, is a growing threat. she says they were decimated. perhaps that is the most

important thing that needs to come out of these discussions, what does she really believe about al-qaida in this region? >> right, martha, benghazi we're talking about the past, it's very important but it is the past. despite what susan rice this is about the status of al-qaida that will determine the policy over the next several years going into the future. i agree entirely with aepb ayotte. we see al-qaida growing and expanding throughout the middle east. either al-qaida or it's franchises growing and expanding, in many ways the threat is greater now than on 9/11. for susan rice not to understand that is alarming. martha: when she talked about what happened in benghazi and attributed it to the mob and the film, my question works i would want to knowfor you.

did you eliminate them as a threat in that region and why? do you think that question has been asked with her. >> i don't think it has. she got away with saying she relied on classified talking points. she had an obligation to look at the classified information. she had to have access to that. that showed that obviously al-qaida is, it's alive unfortunately and its franchises and affiliates are growing and they are in many ways a worse threat to us and the al-qaida core was. that does not reflect on the obama administration, it goes against the narrative that because osama bin laden is dead al-qaida is decimated. the fact is it is not. martha: there are disturbing reports that catherine herridge mentioned yesterday in her reporting on all of this. and that is that there may be a link in the tuni tunis ia attacks and others. do you know anything about

that? >> i know the author of the report has testified before the homeland security committee, he's an expert in the field. he raises real issues, all this has to be looked at. we have to assume there are links between these type attacks and these al-qaida affiliates. chairman mike rogers was talking about one of them in one of his recent interviews. the fact is in the middle east it's not going always to be al-qaida per se, it's going to be affiliates. when you look at the attacks happening in a close period of time we have to make the assumption that this is an affiliate of al-qaida, and if it's not we can work our way back. it's always better to assume the worse when you're looking at al-qaida. martha: i was looking at a piece by general jack keane in the "wall street journal." he says the reality is that in benghazi in one night an al-qaida-affiliated group destroyed a diplomatic force, killed a u.s. ambassador and

three other americans and forced an end to inch clandestine activity in that area. what did we lose by losing our base in terms of watching what is going on in that region, congressman. >> i can't go into any details there. as usual jack keane is right. the fact is there were real devastating losses at benghazi which go beyond the loss of life which are tragic in themselves. beyond that i can't go beyond that that at this stage. martha: do you think she'll be proposed as secretary of state and be confirmed. >> i think if she is proposed she has to go through detailed, comprehensive hearings. she didn't go on shows after reading four or five sentences on unclassified talking points. she had to sit down in the white house where she grilled her and threw questions at her. i assume the questions had to come from the national security council. let's find out who gave it to

her and when. martha: and perhaps a what her own belief system is about al-qaida, whether she thinks it is a growing threat or not. everyone wants to hear about that. thank you. bill: there is a fresh twist in the fast and furious scandal. the new push to reach a deal with the attorney general eric holder. what is this all about we wonder? martha: plus, getting the boot. salvation army bell ringer's at the center of a holiday controversy? >> we are only here to receive money that people want to give. we are not here to make anybody feel guilty. we are here to raise awareness for the salvation army's work. ♪

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and then it plowed into a new york house killing a 6-year-old boy east was sleeping.

the police say that the driver of the bus was trying to avoid a man who was crossing the street. the bus hopped the curb and hit the house. the little boy was killed. a tragic, awful story, and his seven-year-old brother was injured as well. eleven people on the bus were hurt. the pedestrian is in critical condition. when a sad story. bill: all right, bya now because you asked. we got an email from a gentlemen by the name of glen miller, he writes the following. i do not hear much about the fast and furious investigation. i don't understand why the news media backed off. well that email from glen coming amid what could be big developments in the investigation very soon. lawyers for the justice department and house republicans will meet soon to talk about a potential setment in the case. jay secculo is chief counsel at the american center for law and justice. good morning to you. >> good morning. bill: they are going to meet in the near future. i don't know if it's this week,

a week from now or a month from now. what are you hearing on the date for the meeting and why would that be significant? >> well, what's happening right now is major hearings are going to start coming up after the first of the year. what you've got -- it's pretty typical in this kind of litigation. it's to see a period of time right before the major motions are argued that you try to resolve the conflict, and the resolving the conflict here would be the production of numerous documents that congress has rightfully asked for. i think the justice department does not want to go through a full contempt proceeding if they could avoid that. i think what you'll see, like you said, bill it could be next week, it could be at the end of the month, it could be late december, early january. there is a major hearing coming up in january. i suspect what we'llee see is an attempt to provide documents. the reason it's quiet in the news is because it's now in court and the court process jenny grinds pretty slow. on this one i think you'll see an attempt to get these

documents released. whether it's successful or not this resolution nobody knows. i think it's a step in the right direction for both parties. bill: the issue at the center is a letter sent to the department of justice, then retracted. and it said they had no part in the situation in arizona. they had to row trac retract that. >> you've got members of the congress, the house and senate have hears. you have justice department officials that are testifying. in their testimony they make unequivocal statements that atf was not involved, they put it in a letter in february. eight months later they have to withdraw the letter saying it was factually incorrect saying atf was involved. if a private sit ten were to lie before congress and make a fal false statement it could be deemed a criminal act.

again the reason for the hearing is the retraction of the letter and no real release of documents and the slow drip of documents that we had over the summer and even in the spring this last year. the fact of the matter is that letter in february that was later retraebgtd is wh retracted is why there is such a level of distrust between the justice department and the legislative house of our government which is the house and senate. bill: you told our producers there is no indication the documents requested fall under executive privilege. what does that indicate, then, jay? >> it indicates to me that what they've got is documents that are going to be troubling to the justice department, and probably troubling to the higher ups in the justice department. the won inspector general report was saying it wasn't eric holder but some of his deputies certainly knew what was going on. its not executive privilege because they insisted that the president was not notified and was not involved in that. if the president wasn't notified, if legal advice was not given to the president of the united states then there is no executive privilege.

i think the executive privilege argument is going to fall short and that's why you'll see some documents hopefully released and get to the bottom of this. the border agent's family, brian terry's family deserves the answer the american people deserve the answer and congress deserves the truth here. theyically lied to. it's serious. to have a letter come in and then retracting it this is serious tough stuff and that was a big mistake and there are consequences to this. bill: you filed a brief to the justice department. you believe the administration is ready to cut a deal? >> i think they want to cut a deal. i don't -- i don't have a crystal ball on this. if i was representing the white house on this. or the justice department i would try to cut a deal, get the documents released and get this behind the president, because right now this is still this lingering, as you got this email from the viewer, this lingering doubt as to the integrity and honesty of what is going on in the justice department, they just need to get it over w. the longer these things go it tends to be the worse it gets. it's the old story the crime is

bad enough, the cover up is worse. i think that's what you've got here. they need to come clean with the documents, let the committees review the documents make its recommendations and findings and get this done and if i was representing the white house i'd encourage the justice department to do just that. bill: thank you for coming in todayment good to talk with you again. our viewers at home you got a question you want answered, bya because you asked. the email is hemmer@fox news.com. or follow me on tweeter, 40 words or less, have you to brief it brief. martha: house republicans coming to the mike stones and telling the president that entitlements have to be on the table for any kind of deal to happen. that is just moments ago. we'll play for you what john boehner had to say about that. we'll talk to a key democrat about why the party doesn't want to deal on that front, all that. bill: you've got to wonder if it's not a part of the deal how does it pass the house. also republicans now countering

the controversial d.r.e.a.m. act for young illegal immigrants. they have a plan of their own and one of the bill's cosponsors is live here to explain that moments away. martha: yes, she is. [ malannouncer ] it'that time of year again.

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bill: breaking news from the hill moments ago. republican leaders on the house putting their cards on the table when it comes to revenue and

when it comes to entitlement reform. we are going to hear from the house speaker john boehner followed by the house majority leader eric cantor. moments ago on the hill. >> going over the fiscal cliff will hurt our economy and hurt job creation in our country. republicans are committed to counting t continuing to work with the president to come to an agreement to avert the so-called fiscal cliff. that's one reason why we believe we put revenue on the table, as long as it's accompanied by serious spending cuts to avert this crisis. we believe that this -- this fits the president's request for a balanced approach to this issue, and we're going to continue to work with the president to try too resolve this in a way that is fair for the american people. we all know that we've had this spending crisis coming at us like a freight train, and it has to be dealt with, and in order

to try to come to an agreement republicans are willing to put revenue on the table, but it's time for the president and democrats to get serious about the spending problem that our country has. but i'm optimistic that we can continue to work together to avert this dry sis, and sooner rather than later. >> good morning. you know i was heartened to say that last week the president's chief political adviser mr. plouff indicated that medicare and medicaid are the main drivers of our deficits, and i know we have seen this morning also several editorial writers indicate the same, that it is important that we put these drivers of the deficit on the table and include them as part of any agreement to avoid the fiscal cliff. bill: so there is one side. now the other with new jersey

congressman bill pascrell a democrat on the house budget committee, ways and means committee. welcome back to "america's newsroom." there is a headline from your colleague on the house side from republicans, so when do democrats show their hand on entitlement reform, sir? >> i don't think that the republicans have showed their hand. we have the same tune, a little different lyrics coming after the election. i have a great deal of respect for speaker boehner, but i don't think they've changed at all. to put revenue on the table and simply talk about possibility of capping or doing away with certain deductions is a disservice to the middle class. we support very clearly maintaining the tax cuts for the middle class of this country, that means 98% of the people will get a tax -- continue to get a tax cut, 97% of businesses we've made that very, very clear. bill: that wasn't the question. the question was about retitlement reform, medicare

and medicaid. will you be willing to come to the table and negotiate on those two items in order for people like john boehner and eric cantor to get the votes necessary to get a bill passed. >> we don't accept the first part of the premise. what we will do is we realize that the entitlements need review all the time, but we're not going to stop beneficiaries from getting what they deserved, they paid into it, whether it's social security or medicare. first of all, neither of them directly affect the budget, neither of them directly affect the general budget. medicare does, but we are not going to, going to deal with the beneficial results of what that program is all about. we've made them very, very clear, bill, very clear. bill: do you agree that medicare and medicaid are bankrupting the country and they need to be reformed and changed. >> no i don't believe that at all. you have to define what that means. bill: i'm about to, just benefit me one moment here. here is the president of the united states, three years ago on this very topic, listen.

>> the major driver of our long-term liabilities, everybody here knows is medicare and medicaid and our healthcare spending, nothing comes close. social security we can probably fix the same way tip o'neal and ronald reagan sat down together and they could figure something out, that was manageable. medicare and medicaid massive problem down the road. that is going to be what our children have to worry about it. bill: is he wrong? >> no, he was talking about also you forgot to mention he said healthcare costs, that is the thing that really has the budget in grips. we should be thinking more of the american economy rather than the budget. we are so fixated on a budget that we are never going to help this economy. you know what, simpson-bowles warned us about this. if we have draconian cuts as the other side has recommended, what we're going to have is a worse situation and a renewed recession and i don't think you

want that, and i don't want that, am i correct. bill: a lot of folks would say 16 trillion in debt is something that is unacceptable. >> it is unacceptable. bill: this is the editorial from the "washington post" now okay. at some point president obama has to prepare the american people and his own supporters, most of all, for the hard decisions required to put the country on a sound financial footing. only one person is in a position to make it happen. i'll give you the last word. when will it happen? >> the yes is there's going to be a review, and it has been going on since the healthcare act of what hedda car medicare does and what it does not do. that does not mean have you to reduce the benefits of those who paid into the program. that we have to make clear before we even discuss medicare. it should not be in this deal. give the middle class the tax cuts, continue the tax cuts, which are 98% of the american people, this party, the republican party is not going to hold this hostage and america

hostage any longer. we have to make that clear, bill. when you're talking about medicare you're talking about healthcare costs, there is a difference. bill: these are enormous issues and there are 33 days on the calendar to get most of them solved otherwise you punt it into 2013 or go overt cliff. it's my sense that both side are still very far apart from the deal. >> i would agree. i hope we can compromise. i agree with your analysis. bill: we'll bring you back in december. >> okay, bill nice talk toug. martha: 24 hours until a key vote at the u.n. on whether to recognize a palestinian bid for statehood. some countries have already announced support. others are on the fence, they are concerned that the status upgrade might mean something not in the best interest of israel or perhaps the middle east overall. david lee miller joins us live in jerusalem. david, what is the reaction from israel to this planned vote

today at the u.n.? >> the israeli reaction to the vote which is scheduled for thursday, martha is essentially one of resignation. there is not a lot of drum ma or uncertainty about the out cox the vote. israel and much of the world fully expects that the palestinian bid for a known observer status to pass overwhelmingly at the united nation. israel says it rejects the notion that the pal steup palestinians are acting eu unilaterally. israel has to be tkaeufl tha to to be careful that it doesn't impose sanctions or things that are damaging to mahmoud abbas. it could lead to a strengthening of hamas. as to the palestinian authority this is largely a symbolic

effort. 132 nations currently recognize palestine. they are hoping for a vote that could produce 170 positive votes. we'll find out very soon. martha: we sure will. david lee thank you. bill: republicans have their own version of the d.r.e.a.m. act. how do you solve illegal immigration? the coautomatic thoefr the achievcoauthor of the achieve act is here and will be here in a moment. martha: a couple out for a drive, attacked over a cellphone video. >> if anybody wants property from you it's not worth your life or getting injured over it. property can be replaced, but you cannot.

bill: we have new details on a huge fire at a clothing factory in bangladesh that killed more than 110 people. fox news learning that disney and sears are some of the western companies that did business inside that factory. it larry merged that workers

there were making clothes for walmart on the clothing label of hip-hop star sean combs in bangladesh. martha: republican senators are taking on immigration with a new bill that is aimed at young illegal immigrants brought here by their families. the proposal by senators kay bailey hutchison and jon kyl rifles the d.r.e.a.m. act that never made it out of president obama ended up circumventing congress and enacted some terms of the d.r.e.a.m. act. kay bailey hutchison joins me now. good to have you here this morning. >> thank you, martha. great to be here. martha: i know this is something you have had in the works for quite some time. some might look at this rollout now and say, well this is because, you know, the republicans had such a tough time with the hispanic vote in the election. >> actually we have been working on it, jon kyl, john mccain and

myself for over a year, trying to put something together, talking to a lot of different factions and people about what would be a balanced and responsible way forward on this. and things got in the way. during the election process, and then the president's executive order. but we wanted to put this marker down. it might come up in the lame-duck session but if it doesn't at least it's a start to talk about this very finite group of young people who are here because they were brought here as children. martha: i think so many people have an understanding of their situation, and it addresses children who were brought here under the age of 14, who have been here for five years, who have had a couple of years of school or military service, that they should be given some sort of different circumstance. what is different about this bill than the d.r.e.a.m. act that so many of your cal lease were so muccolleagues were so much against? >> what is different is that we

don't give an automatic green-card pass to citizenship. we give a legal status, a work advice a so that these young people can work and not be deported, not be in fear of deportation, but contribute to our society. because they are going to have degrees, they are going to have college degrees or vocational education and we want them to be productive citizens. this is the only country they've ever known. if they want to be citizens under our act they go through the law as it is today, they don't pu cut in line. they get behind the people who have abided bylaws and waited for years and done what they were supposed to do, wisconsin think is the balanced approach. martha: what is the likelihood of passage of a bill like this and what's the involvement been of marco rubio who i know has his own bill that he says is going to solve the whole problem that comes out in 2013. >> marco has been very much a part of this. we've worked with him, he's been

aware of what we were doing and he's made a great contribution. he wasn't quite ready, he's vetting with other interest groups and making sure that he's comfortable with what he wants to do going forward, but we felt like now was the time. jon kyl, john mccain and i did introduce our bill yesterday, and i think there's been a lot of solid support, a lot of people saying, look, we need to address this. this is a great start, a lot of people are interested in signing on, and even on the house side as well. i think this is the time to start and we want everybody who is interested to fine tune, if they want to, but let's get these young people, who are in a very time sensitive situation the help they need to contribute to our country. martha: senator, euro tiring and you've had a lot, prestigious career in washington. i wonder after the election when you looked at those results and

saw how your party did with hispanic voters, what did you think about that in. >> i was sick about it. my last election for the senate, i got 44% of the hispanic vote. i have a very strong position with and real friendship with the hispanic community in my state and it can be done, and that not only hispanics, but asian-americans did not vote republican. these are people who have our values, they have our work ethic, that we are trying to keep america a entrepreneurial country, and they are entrepreneurs. we have to make sure we are talking to them, bringing them in and hearing their suggestions as i do in texas and let's move together with what keeps the american spirit what it's always been, you can come here, work hard and give your kids a let's chance than you had. martha: we'll see how you make out with this bill.

thank you for being here this morning. >> thank you, martha. bill: we are 11 minutes away from jon scott and "happening now." through the magic of tv he's here now. what is up, jon, how are you doing. jon: doing well, bill, thank you. dramatic developments on capitol hill as the battle over the looming fiscal cliff intensifies. will republicans bulge on the top tax rates? will the democrats give in on entitlements. how will the fulone economist said we shouldn't be worried about a fiscal cliff, we should be worried about a fiscal avalanche today. "consumer reports" points to fears it has for consumers of pork. justified fears or junk science. bill: we'll see you then. a red kettle controversy, what is the problem with the salvation army?

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martha: this is a crazy story, a shooting over a cellphone video in southern california. oakland police say this a couple recorded a car driving erratic lee and the driver noticed that he was being filmed, on the cellphone an pulled up alongside and pointed a gun and demanded the video back. the couple drove away, but the suspects fold and one of the gunmen then gotten to the victim's car and fought with the husband who managed to kick the guy out but not before the gunman fired a shot. nobody was hit thank goodness but boy this is -- there is a lesson in there and maybe a little bit more of a story. i don't know. they arrested the suspect. bill: usually is. one city kicking salvation army bell ringer's out of downtown, saying the volunteers vie lit a

panhandling ban. alicia acuna is live in that counsel, colorado springs. what does the salvation army say about this? >> hi, bell, well the salvation army disagrees but they say they are not going to fight colorado springs on this one. the city council last night aeu profplast night aeu approved the measure, which makes it illegal to panhandle within a distance from downtown. >> it's a giving time of the year, again salvation army is seen as that christmas organization. obviously we do things year round but when the salvation army gets out that's what we are representing is the fact of the ability to help people that are in need. >> reporter: he also says this is not going to make-or-break

them. it's a loss of less than a thousand dollars in donations but it is a loss of the volunteers that hurt. bill: is the city getting any heat from this? >> reporter: they are getting some criticism and the salvation army is obviously getting some support. we talked to the city attorney on this and he says under the law if they are going to bani form of solicitation they have to ban them all. they can't just choose one form which would be panhandling to protect the businesses here. bill: alicia acuna thank you, bells are ringing still. thanks, martha. martha: washington is preoccupied with the so-called fiscal cliff. are you getting tired of hearing that phrase yet? you'll hear it a lot moreover the next six weeks. one republican says little attention is given to the fiscal avalanche, what's he talking about? we'll tell you. $500million up for grabs in the big powerball jock pot. frenzy around the count free. bill: would winning tonight's

lottery bring you happiness? martha: no, no, no, not necessarily. bill: go to foxnews.com and take a survey. back in a moment. ♪ (announcer) when subaru owners look in the mirror, they see more than themselves. so we celebrate our year-end with the "share the love" event. get a great deal on a new subaru and 250 dollars goes to your choice of five charities. by the end of th, our fifth year, our total can reach almost 25 million dollars. it's a nice reflection on us all. now through january 2nd.

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